Posted: December 18, 2024

• HYPE’s market capitalization is now over $7 billion.
• The deposit on the platform is now double its pre-TGE.

Hyperliquid[HYPE] has seen over $1 billion in USDC deposits since the launch of its native token, HYPE, nearly doubling its reserves to $2.2 billion.

This influx has driven the platform’s Total Value Locked (TVL) to an impressive $3.4 billion, signaling strong investor engagement and renewed ecosystem momentum.

USDC dominates Hyperliquid’s asset composition

Hyperliquid has witnessed a significant inflow of over $1 billion worth of USDC since the launch of its native token, HYPE, according to data from SpotOnChain.

The token generation event (TGE) marked a pivotal moment for the platform, driving unprecedented growth in deposits. Currently, the Hyperliquid network holds approximately $2.2 billion USDC, nearly doubling its pre-TGE levels.

While Hyperliquid’s bridge holds other assets, USDC dominates its reserves, comprising almost 100% of the total deposits.

Ethereum, the second-largest asset on the platform, remains far behind with a value of less than $400. This stark disparity highlights USDC’s role as the primary asset driving liquidity on the chain.

TVL skyrockets to over $3.4 billion

Hyperliquid’s Total Value Locked (TVL) has experienced a remarkable surge, reflecting increased platform activity following the HYPE token launch. Data from DeFiLlama shows that TVL spiked from $196 million on the 29th of November to over $3.4 billion at present.

This dramatic growth aligns closely with the HYPE TGE and subsequent listings on various exchanges, signaling strong investor engagement and renewed interest in the Hyperliquid ecosystem.

The rise in TVL underscores the impact of the native token on driving user participation and capital inflows.

HYPE token maintains bullish momentum

The HYPE token has demonstrated impressive performance, trading at $28.48 after a 4.47% increase in the last 24 hours. This price surge mirrors the influx of USDC into the network, reinforcing the token’s growing demand.

HYPE has climbed from $10 to $28 within weeks, breaking through key resistance levels and indicating strong investor confidence.

The current uptrend suggests sustained bullish momentum; however, the rapid ascent raises concerns about potential overheating.

While moving averages and Relative Strength Index (RSI) data remain insufficient for precise analysis, market sentiment indicates that $30 could act as the next psychological resistance level.

On the downside, critical support lies at $20, providing a cushion in case of profit-taking or market corrections.

Can Hyperliquid sustain its growth?

Hyperliquid’s explosive growth, fueled by the HYPE token launch and USDC inflows, paints an optimistic picture for the platform. The sharp rise in TVL and price reflects investor confidence and heightened activity.

Still, caution is warranted, given the steep trajectory.

– Realistic or not, here’s HYPE market cap in BTC’s terms

As Hyperliquid continues to capture market attention, the platform’s ability to sustain this momentum will hinge on maintaining liquidity, expanding use cases for HYPE, and attracting new participants to its ecosystem.

The next few weeks will be critical in determining whether this growth is a short-term spike or the beginning of long-term success.